IMF warns Nigeria of higher levels of food shortage triggered by floods
By Jeph Ajobaju, Chief Copy Editor
Nigeria must wake up to the reality of higher food prices and other existential risks lurking around in 2023 and beyond, triggered by floods and high fertilizer prices, the International Monetary Fund (IMF) has warned.
National Bureau of Statistics (NBS) data already shows food inflation rose 23.72 per cent year-on-year (YoY) in October 2022 with the prices of certain food items up between 50 and 100 per cent.
The IMF predicted in its “Nigeria: Staff Concluding Statement of the 2022 Article IV Mission” report food prices would shoot beyond the roof in 2023 because recent floods affected agricultural productivity.
“Similarly, further volatility in the parallel market exchange rate and continued dependence on central bank financing of the budget deficit could exacerbate price pressures.
“In the medium term, there are downside risks to the oil sector from possible price and production volatility, while climate-related natural disasters pose downside risks to agriculture,” the report said.
Despite Nigeria’s limited direct exposures, it added, the war in Ukraine affects the country through higher domestic food prices, and high food insecurity compounds the effects of the pandemic on the vulnerable.
The IMF anticipates headline inflation to moderate by the end of 2022 because of the start of the harvest season, although it also projects an increase in rice prices caused by recent flooding.
__________________________________________________________________
Related articles:
‘Buhari legacy’ is severe poverty, Atiku scorches him and his APC
Consumption expenditure reaches N57tr cruising on rising inflation
Gates Foundation budgets $1.4b for farmers in Africa, Asia to combat climate change impact
__________________________________________________________________
Agriculture vital to job creation
“Strengthening the performance of the agricultural sector is key to job creation, food security, and social cohesion,” the IMF added, according to The PUNCH.
“Over the next decade, an estimated 25 million additional jobs will be needed to employ the new labor market entrants.
“For agriculture to continue playing a strong role in employment and ensure food security, boosting production and yields through improved input usage, especially through affordable fertilizers and higher quality seeds, better storage facilities and more coordinated policy support across government agencies are recommended.”
The NBS disclosed on 17 November 133 million Nigerians are multidimensionally poor with a significant portion lacking access to food security, healthcare, and education.